TikTok, the viral short-video social media platform, has just surpassed $10 billion in consumer spending, a new milestone in its financial journey, Data.ai reports.
This year alone, the app has garnered an additional $4 billion, solely from virtual coins used to buy gifts for content creators.
The year 2023 marked TikTok’s ascent as the pioneer non-game mobile app to achieve over $10 billion in consumer spending, a remarkable feat.
Starting the year at $6.2 billion, the platform recorded a substantial $3.8 billion growth, signifying a staggering 61% increase from its initial position.
This achievement places TikTok among the elite ranks, joining just five mobile apps that have reached the $10 billion revenue mark, distinguishing itself as the first non-gaming app to accomplish this milestone.
Among its peers are Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans.
TikTok’s major revenue contributors hail from the United States and iOS users in China, each contributing around 30% of the app’s total revenue.
Saudi Arabia, Germany, the United Kingdom, and Japan follow suit, collectively contributing approximately 13% of the app’s revenue.
Fueling this spending spree are TikTok coins, used for one-time in-app purchases, driving the app’s economic engine. These coins enable users to buy virtual gifts for content creators, with TikTok retaining 50% of the payout.
Forecasts indicate an even more lucrative 2024 for TikTok, with projected consumer spending expected to soar to $15 billion.
